Driggs Co. purchased a computer system on January 1, 2014 for $870,000, paying $150,000 down and...

Driggs Co. purchased a computer system on January 1, 2014 for $870,000, paying $150,000 down and agreeing to pay the balance in 6 equal annual installments of $120,000 payable and the end of each year beginning December 31, 2014. An assumed interest rate of 10.5% is implicit in the purchase price. What is the amount of interest expense recorded by the purchaser for the year 2015?

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jeff jeffy answered 1 year ago

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